Longitude Company Borrowed on a Two-Year,10%,$150,000 Note on May 1,with

question 104

Multiple Choice

Longitude Company borrowed on a two-year,10%,$150,000 note on May 1,with interest and principal to be paid at maturity.How much interest will Longitude report on its income statement for the year ending December 31?

• A)$10,000
• B)$15,000
• C)$30,000
• D)$5,000

---

Definitions:

Available-For-Sale

A classification for investments in securities that a company plans to sell but does not classify as actively traded or held to maturity.

Long-Term Investments

Assets purchased by a company intended to be held for more than one year for the purpose of earning a return.

Special Purpose

An activity or function created for a particular objective or for a specific job.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.